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Our Infrastructure Bureau
Mumbai, Dec 9: The apex co-ordination committee, comprising around 100 industrial, trade and consumer organisations, plans to review the power purchase agreement signed between the Dabhol Power Company and the Maharashtra State Electricity Board (MSEB).
This has stemmed from the belief that MSEB has increased tariff largely to pay for the high cost of electricity to DPC. Enron International holds a majority stake in the company which will start selling power to MSEB soon. The board, in order to recover this amount, is now putting burden on all consumers, believes a section of industrial, trade and consumer organisations.
Maharashtra Chamber of Commerce & Industry president Khushalchandra Poddar said the committee would examine the issue. "We have already asked energy minister Gopinath Munde a month ago to give us a copy of the agreement," he added.
"Why should industries and consumers pay a higher tariff to support the MSEB's commitment to an international company," said Thane-Belapur IndustriesAssociation (TIBA) president Dinesh Parekh. MSEB will also have to shut down its own generation which is incidentally cheaper than that of the international company, experts say.
"If the cost of electricity is high, small units will have to close down," said Parekh. Apart from this, the government has taken several other steps which may please some sections of society but will affect the average consumer, he added.
The increase in licence fee, taxes and reduction in tax relief will force industries and traders to go out of business, Poddar said. This will, in turn, affect the economy and spawn unemployment, recession and violence, he added.
Instead of paying higher tariff, industrial units would rather opt for their own generation. "We will demand that various industrial estates be allowed common electricity generation units," he said.
If there is a possibility to reduce the input cost by using cheaper electricity, industries should be allowed to do so, Poddar said.
The cost of electricity generatedby the foreign company will increase with the rupee weakening against the dollar. It may be recalled that since the signing of the DPC agreement, the rupee has tumbled to 43 from around 35 to a dollar.
The organisations which are part of the agitating apex body include the Indian Merchants' Chamber, the Maharashtra Chamber of Commerce & Industry, All-India Association of Industries, Marathwada Chamber of Commerce and Industries, Thane-Belapur Industries Association, Thane Small Scale Industries Association, Sholapur Chamber of Commerce and others.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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